Oh dear, here we go again. May the Good Lord preserve us from experts - especially the eloquent and those in ASIC and APRA.

'Balanced'? How did we come to use a nebulous term like that. Surely all funds are balanced, but differently. Or do we mean some are 'unbalanced'? In short, the term is meaningless.

And 'conservative'! Shouldn't all life savings be invested conservatively? But, then again, what does conservative investment mean? Different things to different people, and different things according to its purpose. Advisers, of course, need to be wary of ASIC's cast-iron interpretation!

Then there's 'growth'! Growth of what? Yes, yes - of course - interpreted and bandied about by all and sundry to mean growth in market values - the quantum. And how successful has chasing growth in market values been? The All Ords today stands where it stood 14 years ago!

And what if - as should be the case with all who are retired, and arguably those saving for their retirement - you are investing to grow your Income Stream! (Then again, SuperFunds - to their shame - don't disclose Income in their 'Change in Value' reporting. Why? Because they're chasing Growth, presumably. Oh dear.)

Then there's good old 'defensive'! Defence against what? Of course: the V-word! (Volatility, that is, not Virus.) And of course, for the growth chasers (read Analysts, Strategists - aka Speculators, Gamblers), it means that proportion that you invest in non-growth assets; effectively, that proportion you don't invest. Because you're scared of volatility. (Not loss, mind you: just volatility.)

No wonder we have a whole industry in disarray! We neither agree on what we are talking about, nor agree on the meaning of the terminology we use to talk about it!

Imagine the state of the medical profession in similar state

Reply to article

For original story, Click Here.

Post script

I am, by nature, education and experience, a conservative investor. My own funds are conservatively balanced, mainly in good old-fashioned Australian 'blue chip' Industrials, other than for a small Cash reserve.

Why? Because, firstly, I like their defensive quality of generating a consistent, reliable and growing income-stream. And secondly, because I'm not prepared to stake my financial security - the security of my retirement income - on speculative capital growth. And I don't have to be concerned with the V-word.

So, ASIC, how do you rate my risk profile?

Reply to article

For original story, Click Here.